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Effect of piracy on innovation in the presence of network externalities

Banerjee, Dyuti - In: Economic Modelling 33 (2013) C, pp. 526-532

This paper analyzes the impact of simultaneous increases in piracy (piracy effect) and network externalities (network effect) on R&D investment. A single firm's R&D investment increases (or decreases) if the network effect (or piracy effect) is dominant. With R&D competition, if the firms...

Persistent link: https://www.econbiz.de/10011048826

Enhanced index tracking with multiple time-scale analysis

Li, Qian; Bao, Liang - In: Economic Modelling 39 (2014) C, pp. 282-292

This paper considers the process optimal strategies for an enhanced index tracking problem. The investment goals are set to achieve a higher return than the benchmark by setting the portfolio's risk profile identical to the primary index risk factors. Return differences between the index and the...

Persistent link: https://www.econbiz.de/10010781995

On the median regression for SURE models with applications to 3-generation immigrants data in Sweden

Shukur, Ghazi; Zeebari, Zangin - In: Economic Modelling 28 (2011) 6, pp. 2566-2578

In this paper we generalize the median regression method to be applicable to system of regression equations, in particular SURE models. Giving the existence of proper system wise medians of the residuals from different equations, we apply the weighted median regression with the weights obtained...

Persistent link: https://www.econbiz.de/10010573371

Integrating bank profit and risk-avoidance decisions for selected European countries: A micro–macro analysis

Gander, James P. - In: Economic Modelling 31 (2013) C, pp. 717-722

A two-equation integrated model is developed to capture bank profit and risk-avoidance decisions. Output is limited to customer loans. The profit function is based on output and selected inputs. Risk-avoidance (using the capitalization ratio) depends on micro and micro∗macro interactive...

Persistent link: https://www.econbiz.de/10011048764

Competitiveness and R&D competition revisited

Matsumura, Toshihiro; Matsushima, Noriaki; Cato, Susumu - In: Economic Modelling 31 (2013) C, pp. 541-547

This paper formulates a duopoly model of firms concerned with relative profits as well as their own profits and investigates the relationship between the degree of competitiveness in a market and R&D expenditure. We find a non-monotone relationship between the two variables. When the duopoly...

Persistent link: https://www.econbiz.de/10010636322

Analyzing long-term average adjustment of financial ratios with spatial interactions

Mate-Sanchez, Mariluz; López Hernández, Fernando A.; … - In: Economic Modelling 29 (2012) 4, pp. 1370-1376

The aim of this paper is to put forward a beta convergence model using spatial interaction to evaluate the dynamics of financial ratios. We overcome some of the limitations that come from the traditional partial adjustment model by relating both models. We show that the parameters of the two...

Persistent link: https://www.econbiz.de/10011048947

Irreversibility, mean reversion, and investment timing

Wong, Kit Pong; Yi, Long - In: Economic Modelling 30 (2013) C, pp. 770-775

This paper examines the effect of irreversibility on investment under mean reversion. We develop a continuous-time model wherein a risk-neutral firm is endowed with a perpetual option to invest in a project at any time by incurring a fixed investment cost at that instant. The project, once...

Persistent link: https://www.econbiz.de/10010608241

Dynamic optimal control of pollution abatement under emissions permit banking

Li, Shoude - In: Economic Modelling 36 (2014) C, pp. 363-369

In a recent work, Dragone et al. (2010) modeled an optimal control model of pollution abatement, and investigated the … the work of Dragone et al. (2010) by providing a dynamic optimal control model of pollution abatement with emissions … emissions permits bought or sold in continuous time through the use of optimal control theory. We illustrate the results with a …

Persistent link: https://www.econbiz.de/10010729823

Regret theory and the competitive firm

Wong, Kit Pong - In: Economic Modelling 36 (2014) C, pp. 172-175

This paper examines the production decision of the competitive firm under uncertainty when the firm is not only risk averse but also regret averse. Regret-averse preferences are characterized by a modified utility function that includes disutility from having chosen ex-post suboptimal...

Persistent link: https://www.econbiz.de/10010729854

Fixed versus variable rate loans under state-dependent preferences

Wong, Kit Pong - In: Economic Modelling 31 (2013) C, pp. 659-663

This paper examines the optimal mix of fixed and variable rate loans of a competitive bank facing uncertain funding costs. The bank's preferences are state-dependent in that the utility function depends on a state variable. We show that the optimal amount of loans extended by the bank depends...

Persistent link: https://www.econbiz.de/10010636272